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    Exam 20: Exchange Rate Crises: How Pegs Work and How They Break
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    El Salvador Has Dollarized; That Is, It Uses the U
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El Salvador Has Dollarized; That Is, It Uses the U

Question 67

Question 67

Multiple Choice

El Salvador has dollarized; that is, it uses the U.S. dollar as its currency. What is the backing ratio for El Salvador's currency?


A) 0%
B) 25%
C) 75%
D) 100%

Correct Answer:

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